Funding Alert

Grow Indigo Secures $10 Million from British International Investment to Boost Farmer Income and Climate Resilience in India

• ByStartupStory     |    March 25, 2025

Grow Indigo, a pioneering agri-tech company in India, has raised $10 million from British International Investment (BII), the UK’s development finance institution and impact investor. Founded in 2018, Grow Indigo is leading the carbon farming revolution with over 2.5 million acres of smallholder farmland enrolled across seven states. The fresh funding will accelerate the expansion of the company’s sustainability programs across India.

Tackling Climate Change Through Resilient Farming Practices

Agriculture accounts for 14 percent of India’s total greenhouse gas emissions—over 400 million tonnes of CO₂ annually. Grow Indigo is addressing this challenge by promoting carbon farming, a sustainable agricultural practice that captures carbon in soil while reducing emissions.

The company encourages farmers to adopt regenerative techniques such as direct seeded rice and no-tillage farming, which offer multiple benefits:

• Enhanced soil health and reduced erosion

• Preserved biodiversity

• Improved water efficiency

• Reduced manual labor, particularly benefiting women farmers

These practices are crucial for decarbonizing rice, wheat, and maize production across India, paving the way for sustainable agriculture.

Creating New Income Streams for Smallholder Farmers

Grow Indigo’s initiatives aim to create an additional revenue stream for smallholder farmers by generating soil carbon credits and sustainable produce for Scope 3 reductions. The carbon credits, generated through carbon removals and emissions reductions, are sold to corporations aiming to build resilient agri-food supply chains and meet their sustainability goals.

The majority of the carbon credit revenue goes directly to participating farmers, improving their livelihoods. With robust measurement, reporting, and verification (MRV) systems, Grow Indigo’s carbon programs offer corporations a transparent and high-impact solution to achieve their sustainability targets while supporting rural communities.

Ambitious Growth and Impact Goals

Grow Indigo envisions carbon farming becoming one of India’s largest agricultural export commodities by 2030, generating billions in additional income for smallholder farmers. The initiative is expected to significantly boost soil health, conserve water, and reduce India’s agricultural emissions.

The company is currently running four carbon farming projects at different stages of development and expects its first carbon credits to be issued soon. With the latest funding, Grow Indigo plans to scale rapidly, enrolling millions of farmers and acres over the next two years.

Quotes from Key Stakeholders

“Regenerative agriculture is the future of farming, not only for improving soil health, conserving water but also for creating improved livelihoods for millions of smallholder farmers,” said Dr. Usha Barwale Zehr, Executive Director of Grow Indigo. “With this funding, we will accelerate farmer enrollment and scale carbon farming initiatives. Maintaining integrity of the sustainability outcomes, by way of carbon credits and Scope 3 emission reductions, is of utmost importance to us and will bring maximum value to farmers with our science-backed MRV offerings. We are thrilled to be partnering with BII to pursue these critical objectives for India’s sustainability objectives.”

Srini Nagarajan, Managing Director and Head of Asia at BII, said: “Rice, wheat, and maize are staple foods in India, cultivated by numerous smallholder farmers who are vulnerable to the impacts of climate change. Through our innovative pools of capital, we are proud to support pioneering businesses like Grow Indigo that address adoption barriers by harnessing the potential of carbon markets. This initiative not only reduces carbon emissions but also enhances farmers’ climate resilience and increases their incomes. This is aligned with the Government’s policies to support regenerative agri practices.”

Jennifer Kaul, Deputy Director, Investments, South Asia at the British Deputy High Commission in Mumbai, said: “India’s strong resolve in the adoption of regenerative agricultural practices is noteworthy. The agricultural sector plays a key role, both for food security and as a valuable export commodity. The UK government is committed to investments that support our climate and sustainability goals, not least in the agricultural sector. British International Investment’s support to Grow Indigo is a welcome step in this direction and reflects the deep partnership between our nations, which is underpinned by growth and sustainability.”

About Grow Indigo

Grow Indigo, established by Mahyco Private Ltd and Indigo Ag, is engaged in research and development, production, processing, and marketing of biologicals. The company connects farmers to voluntary carbon markets through enrollment, advisory, monitoring, reporting, and verification of regenerative agricultural practices. Grow Indigo operates across 16 states in India, with a network of over 2,000 distribution partners and a 600+ member field team, offering solutions from seed treatment to harvest.

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